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Flashcards in Chapter 8 Deck (20):
1

Business Market

Individuals, organizations, or groups that purchase a specific kind of product for resale, direct use in producing other products, or use in general daily operations.

2

Producer Markets

Individuals and business organizations that purchase products to make profits by using them to produce other products or using them in their operations.

3

Re-Seller Markets

Intermediaries that buy finished goods and resell them for a profit.

4

Government Markets

Federal, state, county, or local governments that buy goods and services to support their internal operations and provide products to their constituencies.

5

Institutional Markets

Organizations with charitable, educational, community, or other non-business goals.

6

Reciprocity

An arrangement unique to business marketing in which two organizations agree to buy from each other.

7

New-Task Purchase

An organization's initial purchase of an item to be used to perform a new job or solve a new problem.

8

Straight Re-Buy Purchase

A routine purchase of the same products under approximately the same terms of sale by a business buyer.

9

Modified Re-Buy Purchase

A new-task purchase that is changed on subsequent orders or when the requirements of a straight re-buy purchase are modified.

10

Derived Demand

Demand for business products that stems from demand for customer products.

11

Inelastic Demand

Demand that is not significantly altered by a price increase or decrease.

12

Joint Demand

Demand involving the use of two or more items in combination to produce a product.

13

Business (Organizational) Buying Behavior

The purchase behavior of producers, government units, institutions, and re-sellers.

14

Buying Center

The people within an organization who make business purchase decisions.

15

Value Analysis

An evaluation of each component of a potential purchase.

16

Vendor Analysis

A formal, systematic evaluations of current and potential vendors.

17

Multiple Sourcing

An organization's decision to use several suppliers.

18

Sole Sourcing

An organization's decision to use only one supplier.

19

North American Industry Classification System (NAICS)

An industry classification system that generates comparable statistics among the United States, Canada, and Mexico.

20

Input-Output Data

Information that identifies what types of industries purchase the products of a particular industry.